The Fed Versus Tax Cuts

The Republican tax plan has been driving the market. The Federal Reserve could be next behind the wheel.

The tax plan’s final details are still in flux, but whatever form it takes, two things are clear. First, the expected corporate tax cut will boost corporate earnings. Second, it should give some sort of boost to the economy next year. Both those things seem pretty sweet to investors, which is the big reason why stocks have performed so well as the tax plan moved from “maybe” to “almost certainly.”